Financing for 15 or 20 years? Photovoltaics via KFW?

I am about to finalize everything for my house and request loan offers. (The plot of land has already been purchased). The entire "project" will cost approximately €450,000 – later there will be about €30,000 in development costs.

Briefly about the financial situation / equity:

[*]Net income: €3,150 (tax class 1) + additional income from self-employment (approx. €5,000 net / year)
[*]Equity: €60,000 (land)
[*]Condominium with a market value of at least €150,000, max. €180,000
[*]Cash assets (for financing): €10,000
[*]Reserves (not for financing / reserves for development costs): €30,000
[*]Car is new (€25,000)

The financing should be calculated so that I can manage it alone without major problems. (I am completely excluding my girlfriend from the financing – also regarding the banks).

Budget planning / cost estimation for construction project:

[*]Price of house including garage with desired features approx. €375,000
[*]Photovoltaic system including buffer storage (battery storage): €18,500 (probably less)

Financing plan:

Full repayment – either within 15 or 20 years! Planned monthly installment about €1,200 (which I could manage independently with my income).

Assuming I sell the apartment for €165,000 (that would be my goal), the amount to be financed would be about €220,000 including the photovoltaic system. I would possibly like to run the photovoltaic system through the KfW (program 275 at 1.1% for 20 years) – monthly rate of about €85. However, this should pay for itself through electricity savings/feed-in tariff – therefore I would leave this amount aside.

This leaves roughly €200,000 to be financed – currently the question is how to finance this. Does KfW153 / KfW124 make sense? If yes, can the two programs be combined (that would already be €150,000 via KfW)? And the term for 15 or 20 years? (With 15 years, according to interest calculator – without considering KfW – I would save about €10,000 currently; the rate would be slightly above my target of €1,200, but I think still acceptable!). An alternative would be 20 years and KfW – however, I do not know the exact conditions.

What do you think in general about the financing plan? Have I overlooked anything? And does it make sense to even consider financing over 20 years + KfW, or does that bring little benefit anyway?

Hello,

the two mentioned KfW programs can be combined. However, KfW153 requires the construction of a KfW efficiency house. You didn’t mention anything about that.
If that is the case, taking advantage of the loans offered by KfW makes sense because of the long fixed interest periods, repayment subsidies, and good interest rates.
If not, you can definitely also consider regular annuity loans with a 10-year fixed interest period alongside KfW124! The remaining debt after 10 years will be very different compared to a 20-year fixed interest period with a higher interest rate after the same time.
Then you can calculate how high the interest rates for a 5-year loan (you plan to be finished after 15 years) or a 10-year loan must be after the fixed interest period ends, so that the interest surcharge for 15 or 20 years has been worthwhile.

Regards
Ippebson

Someone at KFW didn’t read properly, 1.1% for 20 years is not available in program 275. Those are the conditions for a 5-year term and 5-year fixed interest. 20 years KFW for building is at 1.31% at Kfw 40+.

Someone at KFW didn't read properly, 1.1% over 20 years is not available in program 275.

That's exactly what I stumbled over as well. 20 years fixed interest would be 2.1%. Then the question is whether it's worth it despite the 25% subsidy?

I would then go for 10 years at 1.35% (if I remember correctly - I checked this morning). In Bavaria, there is an additional €12,500 subsidy for the system through the [10,000 Houses Program] - I can then use this to pay the remaining amount after 10 years. With the repayment grant, it would then be almost for free. (I'm not sure yet if they are combinable - an appointment with the energy consultant is scheduled).

Hello everyone,

since I am also from Bavaria, I have already done some research regarding the bonus for the so-called "EnergieSystemHaus" of the 10,000-Houses Program. :)

What I have read so far is that a prerequisite for the funding is the accompaniment of the project by an energy consultant/expert and the funding as a KfW efficiency house. For this, the following KfW efficiency house levels must be achieved, for example in new buildings at least KfW 55.
The whole thing apparently consists of two components, such as the “Technik Bonus” (1,000€ - 9,000€) and the “Energieeffizienz Bonus” (3,000€ - 9,000€), which together make up the “Energie Bonus Bayern” ranging from 1,000€ up to a maximum of 18,000€.

There are then gradations within the individual projects again, for example with the "Technik Bonus" for a heat pump system with heat storage from 2,000€ - 2,500€. As an example, a photovoltaic system including a storage system with an energy management system from 2,000€ up to max. 8,500€ (presumably depending on size).

The "Energieeffizient Bonus" depends on the energy efficiency level or the targeted heating demand. For a new building, for example, a 3-liter house with a heating demand ≤ 30 kWh/m²a is specified, which is subsidized with 4,500€. For me, this value cannot really be related to heating systems yet, as I am not that far along with the house planning.

All information without guarantee or based on online research. ;)

@ROLi84, keep me updated on the results with the energy consultant